Colombia energy sector policy and investment shifts

Colombia is experiencing shifts in its energy sector policy and investment forecasts under the administration of President Abelardo De La Espriella. The government is currently reviewing approximately 330 decrees from the previous administration regarding mining and power generation to restore national competitiveness.

In the coal sector, Fenalcarbon suggests annual production could rise to 90 million tons by 2030, up from a 2026 forecast of 53 million metric tons. This potential growth may involve adjusting taxation, licensing, and port expenses, as well as reconsidering previous bans on coal exports to Israel.

Regarding natural gas, Naturgas projects industry investment will increase 17% to US$1.031 billion in 2026. Minister of Environment and Sustainable Development Fabio Arjona has identified natural gas as a critical component for the energy transition, arguing it can ensure energy security and reduce greenhouse gas emissions. Arjona warned that replacing gas with more polluting substitutes could increase the national CO2 inventory by up to 10%. To mitigate energy rationing risks, the government has authorized the expansion of the regasification port pier in Cartagena.